South African Section 12J venture capital company Kingson Capital has launched its second fund, which will invest in high-growth tech and black-owned small and medium sized enterprises (SMEs).
Founded in 2015, Kingson Capital supports SMEs in a bid to enable them to accelerate their growth potential. As a Section 12 J firm, all investments with Kingson are fully tax deductible in the tax year that they are made.
The company invests in entrepreneurs with unique and scalable business concepts, whose products change the current landscape and existing business models. Its new fund pairs investment with business support through its investment structure, allowing investors to score B-BBEE points under both Enterprise and Supplier Development scorecards, whilst acting as a minority shareholder in the black-owned business in which it has invested.
Kingson believes pairing investment with business support facilitates meaningful economic transformation, driving stable and sustainable black-owned business.
“Although we see a substantial rise in South African startups, it is unfortunate that when it comes to them sustaining that startup momentum, many fall by the wayside due to lack of support,” said Gavin Reardon, founder of Kingson.